One of the most rewarding parts of the financial planning profession is educating people about personal finance. Knowledge is a bedrock. It’s difficult to make optimal financial decisions for yourself and your family without at least basic financial literacy.
Unfortunately, many people, especially young people, don’t know as much as they should about personal finance. The Wall Street Journal reported on July 9, “U.S. adults on average got 48% of the questions correct on the 2023 Personal Finance Index survey by TIAA Institute and the Global Financial Literacy Excellence Center, which measures knowledge of personal-finance topics. The results for Gen Z, the generation born from 1997 to 2012, were even worse, coming in at only 38%.”
Happily, the Wall Street Journal article continued by suggesting five books to fill some of the knowledge gap. Here are their suggestions:
The Millionaire Next Door by Thomas Stanley and William Danko.
The Thin Green Line: The Money Secrets of the Super Wealthy by Paul Sullivan.
Get Good With Money: Ten Simple Steps to Becoming Financially Whole by Tiffany Aliche.
The Bogleheads’ Guide to Investing by Mel Lindauer, Taylor Larimore and Michael LeBoeuf.
Smart Women Finish Rich by David Bach.
One of our team’s favorite books is, in fact, The Millionaire Next Door. It’s a classic. It explains that wealth is generated by saving and investing, and you don’t necessarily have to be a high-earner. Another favorite of ours is The Psychology of Money by Morgan Housel. Housel presents 19 short stories with lessons about how we should approach money.
Our team believes in continuous learning. It helps us give impartial, up-to-date advice to our clients and friends. Let us know how we can be helpful in your or your family’s financial learning.